I.    CONSENT CALENDAR

A.  APPROVAL OF COUNCIL JOURNALS

August 21, 2007 - Regular Meeting

August 24, 2007 - Special Meeting

September 4, 2007 - Closed Meeting

September 4, 2007 - Regular Meeting

B.  CANCELLATION/ABATEMENTS (Requested by Tax Assessor)

C.  LETTER OF RESIGNATION

Michael D. Popolillo, Assistant Harbormaster

On motion of Councilman Silva, seconded by Councilman DiTraglia, and on a roll call vote, it is unanimously voted to approve the Consent Calendar.

On motion of Councilwoman Perry, seconded by Councilman Silva, and on a roll call vote, it is unanimously voted to keep the minutes of the closed meeting of September 4, 2007 closed.

II.   APPOINTMENTS

1.   Traffic Control (by Councilman Cusack)

David J. Najarian (for a term ending 12/01/08)

2 Fern Drive (02916)

On motion of Councilman Cusask, seconded by Councilwoman Perry and on a roll-call vote, it is unanimously voted to approve.

III.  PUBLIC HEARINGS

ORDINANCES – FINAL PASSAGE (Given First Passage September 4, 2007.  Advertised – Prov. Journal – September 7, 2007.)

IV.  CONTINUED BUSINESS

V.   NEW BUSINESS

A.  CITY MANAGER’S REPORT

1.   Tax Increment Financing.

Mr. Brown stated some time ago the Council entered into a Memorandum of Understanding concerning tax increment financing that told us we had some work to do to develop some information for you on tax increment financing.   The waterfront has engaged in service as miniature partners.  I asked Kevin Hively from Ninigret Partners to come tonight to make a presentation.  This is not intended for a vote tonight it’s a progress report.

Mr. Hively stated the concept is base value and associated taxes.

TIF in Rhode Island R.I.G.L. Title 45 Ch. 33.2 Enabling Legislation, Development of TIF Plan, Project Feasibility,  Project Negotiation, and Project Approval.

A nuance to TIF in RI because of S3505 – the property tax cap.

The way those incremental tax revenue is applied to the tax base, which means it drives the rate down.  You don’t actually get the gain on the tax base.

The other thing that is important is that any debt service that’s issued that’s tied to a bond that comes thru the City’s general fund counts towards this property tax.

There are two ways to do this; one is this conventional TIF basically a government entity issues bonds from this anticipated tax revenue.    The market risk and the financial risk is held by the government entity.   If the revenues fall short you have to make it up.

Councilman Cusack asked who is at risk if there is a default.

Mr. Hively stated the issuer of the bond but in this case the fall back creditor would be the City.

Councilman Cusack asked why.

Mr. Hively stated because security for the bond is the tax revenue 2/3’s have enhancements.

Councilman Cusack stated the developer said exactly the opposite.

Mr. Hively stated some are rated and some are not.  You could refinance later.  Alternative approach is a pay as you go.  The government reimburses the developer as revenue is developed.

Pay go but not more than max costs.

Risk factors to be considered:

Revenue/Market risk:

The proposed project actually takes place – Particularly important if the TIF is used for basic infrastructure to enable development well ahead of real estate development.

Projected value meets actual value.

Absorption risk – How fast the developed real estate begins generating property tax revenues.

Property owner/user concentration

Investment/underwriting risk

Project risk:

Cost overruns on public infrastructure

Unforeseen environmental or geotechnical issues

Operating risk:

Development generates substantial need for public services beyond projections.

Two major approaches to TIF – Conventional TIF – Pay Go TIF

Mr. Brown stated the presentation was not designed to address a particular project.

Councilman Cusack stated the difference between a Conventional TIF and a Pay Go TIF.  I wouldn’t support where the City would take any risk.  We’re not real estate developers.

Councilman DiTraglia stated not a bad plan but it’s not a good plan.  I don’t think the City should go into the real estate business.  We have to go back before we make any decisions.

On motion of Councilman Cusack, seconded by Councilman Silva, and on a roll-call vote, it is unanimously voted to accept as a progress report.

2.   Bid EP06/07-14   Six Wheel Catch Basin Cleaner with Plow.

Mr. Brown stated the City solicited bids for the Catch Basin Cleaner with Plow.  We are recommending the Council accepts this low bid of $134, 776.  This will be a lease purchase; it was incorporated in the departmental operating cost budget.

Councilman DiTraglia stated I know we are in dire need of it and it was appropriated in the budget.

Mr. Brown stated yes and it’s replacing a twenty year old piece of equipment.

On motion of Councilman Silva, seconded by Councilman DiTraglia, and on a roll-call vote, it is unanimously voted to approve.

3.   IAFF Negotiations.

Mr. Brown you have before you a Memorandum of Agreement with the City and IAFF.  This is the second year of a three year wage re-opener.  The agreement is essentially a 3% salary increase and this is in line with what was accepted by IBPO.

On motion of Councilwoman Perry, seconded by Councilman Silva, and on a roll-call vote, it is unanimously voted to approve.

4.   Department Heads Contract.

Mr. Brown stated similarly we have a Memorandum of Agreement with our Department Heads.  They are accepting the same 3% increase as the other bargaining units and I would ask the Council’s acceptance.

On motion of Councilwoman Perry, seconded by Councilman Silva, and on a roll-call vote, it is unanimously voted to approve.

B.  REPORTS OF OTHER CITY OFFICIALS

CHIEF OF POLICE REPORT

Special Officer Ed Thornton (by Chief Hubert Paquette)

Mr. Conley stated this is a report sent in by the Chief and reviewed by the Law Department requesting a hearing to show cause why special officer Ed Thornton should not be removed as a special officer of East Providence.  City Council was the appointing authority for special officers. As such, it’s the Council’s responsibility to remove somebody from special officers. Ed Thornton is entitled to a hearing. If the Council decides to accept the Chief’s request, they need to set a hearing date.

Mayor Ramos asks that the motion date be set after the budget hearings.

Mr. Conley stated could you state the date, second meeting in November.

On motion of Councilman Silva, seconded by Councilman DiTraglia, and on a roll-call vote, it is unanimously voted to approve.

CLAIMS COMMITTEE (by William J. Conley, Jr. – City Solicitor)

On motion of Councilman Silva, seconded by Councilman DiTraglia, and on a roll-call vote, it is unanimously voted to approve.

C.  COUNCIL BUSINESS

1.   Council Appointees Salaries.

Councilwoman Perry stated I asked this be placed on the Docket and request that following the meeting that the Council go into executive section pursuant to 42-46-5a 1 which is job performance.

On motion of Councilwoman Perry, seconded by Councilman Silva, and on a roll-call vote, it is unanimously voted to approve.

2.   Wastewater Treatment Plant Presentation by Thomas Azevedo and Thomas White (by Mayor Ramos)

Mayor Ramos stated I put this on the agenda because I want to get a feel from those who have been out in the trenches working. Mr. Coutu is the Director, who I have total respect and confidence in, I would like him to come up and introduce the two people in his department.

Mr. Coutu stated this is the week of Wastewater meetings.  Tonight I’m joined by the Superintendent of the facility Tom White and Assistant Superintendent of the facility Tom Azevedo. On Thursday, September 20^th at 7:00 p.m. in Room 306 there will be an informational meeting and I’ll be with engineers from technical consultant, Camp, Dresser, and McKee (CDM) to talk about the facility planning process, the long term capital plan that develops and the new rule requirements.

Mr. White stated the plant was built in 1952 and dedicated in 1954 at that time the plant served a population of less than 18,000 and received an average daily flow of wastewater of 1.85 million gallons per day (MGD). We have been getting many awards since 1979.  Today the City of East Providence Water Pollution Control Facility is designed to treat domestic, commercial, and industrial wastewater from 2/3 of the City and from the Town of Barrington.  Most of the structures and equipment in use were installed in the mid-1970s.  Our Wastewater System Infrastructure includes the 10.4 MGD Wastewater Treatment Facility.  22 Wastewater pumping stations, Preliminary Treatment, Primary Treatment, Primary Sludge Pumps, Reuse of Decommissioned Equipment, Secondary Treatment, Aeration Tank, Secondary Clarifier, secondary Treatment Pumps, Return Sludge Pumps, Waste Feed Pumps, Plan Water System, Solids Handling System, In House Projects, Order Control Bio-Filter, Secondary Clarifier skimmer arms, Bulk Chemical Storage, Septage Handling System, Other in-house completed projects, New energy efficient boiler, Energy efficient lighting system in many buildings, Design and installed DEM required Final Effluent De-chlorination system, Rehab of electrical system and pumps at Merritt Road Pump Station.

Mayor Ramos stated I want to make one thing completely clear, the $53 million dollars is a 20 year plan. 

Mr. White stated yes and that’s not just the Wastewater facility, that’s pumping stations and corrections that need to be made.

Mayor Ramos stated when we were looking for some Federal help we were talking about $12 -13 million on the Nitrogen system and we are on a time schedule with DEM to meet that need.

Mr. White stated we are in a consent agreement for 2012 to reduce the amount of Nitrogen 8 parts per million.

Mayor Ramos stated so the $53 million is in stages.

Mr. White stated yes.

Mr. Azevedo stated in the slides I showed the clarifiers.

Mayor Ramos asked about Barrington.

Mr. Azevedo stated East Providence is 80% and Barrington is 20%.  We meter Barrington’s flow share of our operating budget. Maybe it’s 20% - 24%.

Councilwoman Perry stated I’d like to commend Mr. White and Mr. Azevedo for a very professional presentation, it was good and knowledgeable and indicative of the operation.  I was always very impressed by the professionalism, the dedication of the people in the plant and how serious everyone took their jobs you can tell the people have so much pride in their work.

Mayor Ramos stated he remembers the gray water that they recycled and used.

Mr. Azevedo stated last year for the same period we used 143,000 cubic feet and this year we used 10,000 cubic feet.

Councilman DiTraglia applauded them for their dedicated service; it’s amazing what they do.

Councilman Silva asked about page 4 on the Preliminary Treatment, you stated to cover that it would help with the smell.  Where is the grant from Chaffee the $800,000 matching fund?

Mr. White state the grant was $800,000 and we would have used that to cover this.

Councilman Silva asked if we still have it.

Mayor Ramos stated yes we still have it.

Mr. Coutu stated those funds are still available and we have been using them for some smaller type projects, some of the studies we have been doing.  The thing is we have to front the cost and then we get 55% back.  So it’s difficult if we don’t have the upfront capitol. 

Councilman Cusask thanked     Mr. Azevedo and Mr. White for the presentation and for in ingenuity demonstrated by the people at the plant, they go above and beyond.  If the preliminary treatment area equipment could be enclosed, would that eliminate odors in that area?

Mr. White stated if we covered that area it would eliminate 90% of the odors.  Enclosing that area and having a scrubbing system.

Mayor Ramos wanted to thank Mr. Coutu and was impressed with what they were doing at the Plant.  I went to Washington when I was first elected we were going to have a discussion with the Geonova project and I asked Mr. Conley at that time to put a piece in there so I could speak on our Wastewater facility and I did.  When I got re-elected I spoke to Mr. Brown about my concerns for our Wastewater facility.

On motion of Councilman Silva, seconded by Councilwoman Perry, and on a roll-call vote, it is unanimously voted to accept as information.

X.   ADJOURNMENT

On motion of Councilwoman Perry, seconded by Councilman Silva to reconvene the Executive Session after Council meeting recess, it is voted to approve.

Mayor Ramos calls for a recess at 9:10.

The City Council meets in open session at 9:35 p.m.

Mayor Ramos reports out the vote of executive session that the Council voted to establish the wages for fiscal year beginning November 1, 2006 for the City Solicitor, the two Assistant City Solicitors, the City Clerk, the two Probate Judges, the Municipal Court Judge, and the City Sergeant at a 2.9% wage increase effective November 1, 2006 and a .6% wage increase effective July 1, 2007 and that the Council voted to establish the wage increase for the same Council appoints for fiscal year beginning November 1, 2007 at 3%.

On motion of Councilwoman Silva, seconded by Councilman Cusack, it is voted to adjourn.

Mayor Ramos adjourns the meeting at 9:37 p.m.

Attest:

_________________________________

Virginia B. Nunes

City Clerk

Approved:        October 2, 2007